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Vast Resources signs docs for $15 mln debt to finance Romania, Zimbabwe projects

Vast Resources signs docs for $15 mln debt to finance Romania, Zimbabwe projects Vast Resources CEO Andrew Prelea

BUCHAREST (Romania), October 24 (SeeNews) - UK-based Vast Resources said on Thursday it has signed a binding conditional bond issue deed for a facility of up to $15 million (13.5 million euro) through an issuance of secured convertible bonds to UK based fund Atlas Capital Markets for the purpose of bringing projects in Romania and Zimbabwe into production.

The facility offers full funding to reach production at the company’s Baita Plai Polymetallic Mine in Romania and at the Chiadzwa Community Diamond concession in Zimbabwe, and subsequently to generate positive cash flow for the company, Vast Resources said in a press release.

"The Atlas facility will accelerate the start of production at Baita Plai while we continue to work on the establishment of a long term finance facility for Baita Plai and other assets in Romania, whether with the Swiss bank or otherwise," Vast Resources CEO Andrew Prelea said.

The bonds were agreed with Atlas Capital Markets and will be released in four tranches. They are issued at 90% of their par value, bear a coupon of 5% per annum and have a maturity date of two years from the date of each issuance providing net proceeds to Vast of up to $13.5 million.

In April, Vast announced it has received a draft proposal for a loan of up to $10 million from a Swiss bank to finance its Romanian mining projects.

According to Vast, this new facility from Atlas does not affect its continuing process with the Swiss Bank or other funders, and the company’s intention is to continue its efforts in securing a long-term financing facility for Baita Plai and its other Romanian assets.

Vast Resources, formerly known as African Consolidated Resources Plc, is an emerging mid-tier, multi-commodity, multi-jurisdictional development and mining company with a project portfolio covering gold, nickel, copper, phosphate and diamonds. It also owns a gold mine in Zimbabwe.

($= 0.8996 euro)